Slide 1: First Quantum Minerals Fourth Quarter 2019
FIRST QUANTUM MINERALS Fourth Quarter 2019
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward- looking information within the meaning of applicable securities laws. The forward-looking statements
Slide 3: Clive Newall, President and Director
Clive Newall President and Director 3
Slide 4: 2019 – A Transformative Year
2019 – A TRANSFORMATIVE YEAR • Cobre Panama from first ore to commercial production in less than seven months • Another quarterly copper production record • Record annual copper production • Low cost structure maintained through the year TSX:FM 4
Slide 5: Financial Review
_ FINANCIAL REVIEW & nt a a =" + : FIRST QUANTUM © = = =
Slide 6: Hannes Meyer, Chief Financial Officer
Hannes Meyer Chief Financial Officer 6
Slide 7: Overview
OVERVIEW 2019 has been a transformative year for the Company, with Cobre Panama, reaching commercial production ahead of schedule. Greatly advanced our vision to be a leading copper-focused metals and mining company. In 2020 capital expenditure is expected to decrease compared to the prior seven yea
Slide 8: Delivering on Growth
DELIVERING ON GROWTH Growing copper production 16% increase in production vs 2018 Additional gold production 39% increase in production vs 2018 Over a third of 2020 copper and gold Geographical diversification production expected from Cobre Panama Commercial production achieved Successful Cobre Pana
Slide 9: Production
PRODUCTION1,2 Annual copper production '000 Tonnes Record quarterly copper production up 29% on Q4 2018, and 16% on 2018 830830 -880 Cobre Panama successfully ramped up in the year, 702 including the declaration of commercial production 539 574 606 from September 1, 2019 and the 8th mill coming on
Slide 10: Financial Overview
FINANCIAL OVERVIEW Q4 2019 comparative EBITDA1,2 of $511m up 6% on the comparable quarter of 2018, despite lower copper price $ million (except per share Q4 2018 Q3 2019 Q4 2019 2018 FY 2019 FY numbers) Comparative EBITDA for the quarter of $511m is 1 Revenue 1,054 987 1,284 3,966 4,067 $30m higher
Slide 11: Financials
FINANCIALS Higher underlying comparative EBITDA1,2 Fourth quarter Full year ¹ Comparative EBITDA is not a GAAP measure, a reconciliation to GAAP is presented in the appendix. ² Underlying comparative EBITDA is shown after impact of market metal prices and foreign exchange movements on operating cost
Slide 12: Quarterly Unit Cash Costs
QUARTERLY UNIT CASH COSTS Q4 2019 and Full Year C1 cost¹ and AISC¹ comfortably within full year guidance C1 costs C1 cost for the quarter is broadly in line with Q4 2018 despite lower production at Sentinel. The C1 cost includes the impact of a full quarter of commercial production at Cobre Pana
Slide 13: Copper Hedging Program Outlook
COPPER HEDGING PROGRAM OUTLOOK¹ Approximately a third of expected copper sales in the first half of 2020 are hedged, at an average floor price of $2.71/lb, exceeding the current market price The Company also has unmargined nickel forward sales contracts for 12,046 tonnes at an average price of $6.77
Slide 14: Debt and Liquidity Profile
DEBT AND LIQUIDITY PROFILE January 2020 Refinancing 2,400 At December 31, 2019 On January 13th 2020, the Company issued 950 $ millions an additional $500m aggregate principal amount of 7.25% Senior Notes due 2023 and 1,100 1,100 600 850 1,000 an additional $250m aggregate principal 804 750 amount
Slide 15: Capital Expenditure
CAPITAL EXPENDITURE1 Capital expenditure on Cobre Panama 85MTPA development project2 was completed, in the quarter, allowing the Company to focus on deleveraging the balance sheet. $ million 2,036 136 1,546 568 205 644 850 850 850 1,332 250 250 250 697 600 600 600 2018 2019 2020 2021 2022 Cobre Pana
Slide 16: Appendix
APPENDIX & FIRST QUANTUM TSX: FM
Slide 17: 2020 – 2022 Guidance
2020 – 2022 GUIDANCE Production 2019 Progressing geographic diversification 15% 21% Production Guidance¹ 2020 2021 2022 Copper (‘000 tonnes) 830 – 880 800 – 850 800 – 850 Gold (‘000 ounces) 280 – 300 280 – 300 280 – 300 Nickel (‘000 tonnes) 15 - 20 25 - 28 25 - 28 64% Cost Guidance 2020 2021 2022 Gu
Slide 18: 2020 Guidance
2020 GUIDANCE Interest Interest has largely been capitalized in the period prior to declaration of commercial production at Cobre Panama. Interest expense of $549m was capitalized to the Cobre Panama project for the eight months ended August 31, 2019. From September 1, 2019, the date of declaration
Slide 19: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at September 30, 2019 ($ million) (7,579) Comparative EBITDA 511 Working capital (64) Capital expenditure (325) KPMC deferred consideration paid (100) Net interest paid (87) Taxes paid (58) Other 27 Closing Net Debt at December 31, 2019 ($ million) (7,675
Slide 20: Non-GAAP Measures Reconciliation – Comparative EBITDA and Comparative Earnings
NON-GAAP MEASURES RECONCILIATION – COMPARATIVE EBITDA AND COMPARATIVE EARNINGS Q4 2019 2019 Operating profit 69 474 Depreciation 290 907 Impairment charges, write-off of assets and other costs associated with the mine 99 112 interruption at Las Cruces Foreign exchange loss 47 96 Loss on disposal of
Slide 21: Non-GAAP Measures Reconciliation – C1 and AISC
NON-GAAP MEASURES RECONCILIATION – C1 AND AISC ($ million) Q4 2019¹ 2019¹ Cost of sales (1,025) (3,277) Depreciation 290 907 By-product credits 165 464 Royalties 61 219 Treatment and refining charges (58) (164) Freight costs (14) (47) Finished goods 10 56 Other¹ 31 71 C1 Cost (540) (1,771) General a
Slide 22: Zambian Budget
ZAMBIAN BUDGET On September 27th the Minister of Finance announced the 2020 Budget. The changes are effective from January 1st 2020. Tax type Change Sales Tax Proposal to introduce sales tax dropped VAT 0% Import VAT on capital equipment and machinery for the mining sector No VAT relief for VAT on c
Slide 23: First Quantum Minerals
FIRST QUANTUM MINERALS TSX:FM info@fqml.com 416-361-6400 1-888-688-6577 23